Forecasting and Dividends

Forecasting and Dividends

Part 1: “Forecasting” Please respond to the following
Assess the financial performance forecasting process, identifying the assumptions made that are most likely to cause a gap between the forecast and actual performance. Indicate how these gaps may be minimized. Provide support for your rationale.
Create an argument supporting the value of forecasting to an organization. Provide support for your argument.

Part 2: “Dividends” Please respond to the following:
Assess the market and shareholder behaviors when a publically traded company makes the decision not to pay dividends to its shareholders, suggesting how management should react to these behaviors. Provide support for your rationale.
Evaluate the factors that an investor may consider when deciding whether or not to invest in a company with a policy of non-dividend payments. Indicate whether or not you believe this a prudent choice for some investors. Provide support for your rationale.